Musk’s xAI Raises $20B As AI Arms Race Intensifies

xAI, the artificial intelligence firm founded by Elon Musk, has raised $20 billion in an upsized Series E funding round, surpassing its original $15 billion goal.

The round attracted heavyweight investors including Nvidia and Cisco Investments, alongside firms such as Valor Equity Partners, Fidelity, and the Qatar Investment Authority. The capital will be used to accelerate infrastructure expansion and development of xAI’s Grok AI models across consumer and enterprise applications.

xAI said 2025 marked a year of major progress, highlighting the rapid buildout of its Colossus data centers, which reportedly ended the year with over one million H100 GPU equivalents. The company is currently training Grok 5 while expanding image and video generation tools.

The funding underscores sustained investor appetite for AI despite warnings of overheated valuations and increasing regulatory oversight. xAI said it continues to hire aggressively as it positions itself at the center of the global AI race.

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